Upcoming Regulatory Filing Obligations for
VoIP Providers
Presented by Kris Twomey
Law Office of Kristopher E. Twomey, P.C.
FISPA-Sponsored Webinar
January 24, 2013
Regulation by the Federal Communications Commission











Offering voice services to the public is not a hobby
Your responsibility, not the wholesale provider
Regulatory vacuum/free-ride for VoIP is long over
Time to Make a Plan Now to Deal With Current
Requirements and For Future Hassles
E911- November 2005
FUSF
CALEA
CPNI- No More Hiding!
VoIP Subscriber Reporting- Form 477
Form 499-Various Federal Regulatory Fees Besides FUSF
New rules coming?
Fines by the FCC Enforcement Bureau
aka Scare Marketing
 Take a look at
 http://transition.fcc.gov/eb/
 http://transition.fcc.gov/eb/Headlines.html
 EB Notifies (for First Time!) Providers of Form 477




Obligations
$25,000 for failure to file CPNI certifications
$1,000 to $6,000 for non-compliant CPNI
statements
June 30, 2011- Advisory Guidance on Open
Internet Rules
Various fines for failing to pay USF
Federal Universal Service Fund and 499-As and Qs
 All VoIP Providers Must Obtain a Federal Registration







Number, and then File a 499-A Every April 1st
Yes, even if you are buying wholesale VoIP
If VoIP Provider owes less than $10K to USAC annually,
then considered de minimis, no money owed to FCC
Formula? 64.9% of VoIP is “interstate,” subject to USF
But then, Wholesaler must report de minimis wholesale
customer revenues to the FCC as if the customer was an
end user so that the USF gets paid by somebody
Providers that are not de minimis should bill for USF, but
the funds would be retained to be sent to the FCC later
Non-de minimis providers must also make quarterly filings
of 499-Qs, similar to reporting and paying estimated
taxes. 499-As are really a true-up mechanism.
An Important Exception for CLECs
CALEA
 VoIP Providers Are Subject to the Communications




Assistance for Law Enforcement Act
Wholesalers are, or at least should be, responsible for
making sure its wholesale services are CALEA compliant
on a technical level
Providers must report on FCC form 445 that they are
using a wholesalers’ services, that as far as they have
been told, the wholesaler is technically compliant, and
that the provider will cooperate with CALEA requests
from law enforcement agencies
Better to do it now before you receive a CALEA warrant
and the FBI asks why you’re not in the FCC’s database
What if I run an Asterisk box? Well, good luck
CPNI
 What is it? Customer Proprietary Network




Information… Huh?
Certification of compliance due March 1 every
year
Wholesalers can and do certify that they are
compliant
Retail providers must certify that they have
not had any CPNI breaches and otherwise
properly guard the data
In 2009, proposed penalties of $20K to more
than 700 companies for failure to file on time
FCC Form 477
 All Facilities-based Broadband and VoIP providers must
report their deployment numbers on Form 477 twice a
year, March 1st and September 1st
 Renewed emphasis on broadband and competition
mapping could result in greater scrutiny
 Why did the Enforcement Bureau issue a notice on
December 16, 2011 reminding providers of the
obligation?
 “What Are the Penalties that Apply? Companies are
reminded that failure to comply with the Form 477
reporting requirements may subject them to monetary
forfeitures of up to $150,000 for each violation or each
day of a continuing violation, up to a maximum of
$1,500,000. False statements or misrepresentations to
the Commission may be punishable by fine or
imprisonment under Title 18 of the U.S. Code. “
Other Issues
 Regulatory fees for de minimis carriers: LNP, TRS, FCC







annual regulatory fee
Please don’t throw those bills away…
States and localities up next, especially state and local
taxation of VoIP—Illinois 7%, Pennsylvania 6%
State registration for VoIP providers– California and
Illinois
Because… state USF
E911 fees from every size governmental entity
FCC outage reporting as of December
Everybody has an Open Internet Principles Statement
posted on their website, right?
What Can LoKT Do About It?
 A small pitch, just because I get teased for being
too subtle in my marketing
 $1000 flat fee to ensure compliance
 Assistance with 499-A
 Assistance with CALEA, FCC Form 445
 Filing CPNI Compliance Statement, Employee
Manual, and Employee Training Webinar
 Assistance with FCC Form 477
 Preparation of Open Internet Principles Statement
 Assistance with state requirements
Ostriches Don’t Really Put Their Heads in the Sand,
Only People Do. Stay Alert!
Kris Twomey
Law Office of Kristopher E. Twomey, P.C.
1725 I Street, NW
Suite 300
Washington, DC 20006
202 681-1850
[email protected]